Huawei Technologies Co.Ltd, the Chinese tech giant, announced a significant move in the automotive industry by planning to invest in Morocco alongside another Chinese partner, Wan’an Technology, according to Chinese media.
This joint venture will focus on producing and selling car parts, with a total investment of 30 million euros, to set up a production base in Morocco. This marks a major step in strengthening China’s involvement in the automotive sector within the Kingdom.
Huawei, known for its contributions to IT infrastructure and smart devices, will invest 19.5 million euros (around 65% of the shares), while Wan’an Technology will invest 10.5 million euros (about 35%).
Wan’an specializes in manufacturing and designing automotive brake components and has a notable history in the Chinese automotive industry. It owns an automotive manufacturing base and fully owns around 8 companies, along with 13 subsidiaries and joint ventures.
This venture aims to boost the competitiveness of Chinese automotive parts manufacturers in North African and European markets.
The same source emphasized that Huawei’s investment is part of its strategy to strengthen its global presence and increase the competitiveness of its international operations.
This development comes after the European Union imposed tariffs on Moroccan aluminum alloy wheels imports, a move related to China’s financial support for one of the Moroccan exporting producers within the framework of the Belt and Road Initiative.”
The European Commission said that it was proven that these unfairly subsidized imports harmed the European industry for the same product.”
Nader Rong, a Chinese economic analyst and journalist, explained that “the ongoing trade war between China and the United States, along with many imposed tariffs on Chinese products exported to European and American markets, has made Morocco a strategic base for several Chinese companies, including those in the automotive sector, to export their products to Moroccan markets.”
He believes that “Morocco has become a hub for Chinese automotive investments due to the mutual benefits it brings to both countries.”
Rong explained that “Chinese products in Morocco are not affected by Western tariffs, which is why it has become a target for investments from the People’s Republic of China in this sector.”
He pointed out that “Morocco’s strong automotive manufacturing experience, especially in electric vehicles, and its rich supply of raw minerals, such as metals for battery production, make it an attractive investment hub.”
Moroccan economist Mehdi Fakir explains that Huawei, like other Chinese companies, moved closer to its target markets to reduce production and shipping costs.
While tax and customs factors may have influenced the decision to invest in Morocco instead of Europe, Morocco’s improved infrastructure and investment climate as well as lower production costs, especially in labor and energy, were key benefits.
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